INVESTMENT STRATEGY: AMENITIES
Investing in Community Amenities Pays Dividends
ENHANCING PROPERTY VALUES AND TENANT RETENTION ARE INVESTMENTS THAT CAN YIELD SIGNIFICANT RETURNS. LUKE BABICH
W hen you own real estate and manage tenants, you have two choices. You can treat your property solely as a business transaction, col- lecting rent and resigning yourself to tenants who cycle in and out, or you can create a rental property that feels like home. In the first scenario, you’re likely to feel resentful when tenants leave, but in the second? Your tenants may stay for years, and your investment yields big returns. The way to increase tenant retention while adding value to your property is simple: Invest in community amenities. WHY INVEST IN COMMUNITY AMENITIES? Investing in community amenities has become a pivotal strategy in the real estate industry. The global pandemic shifted the way many people thought about their homes. Once work became remote, many tenants realized their houses were only suitable for sleeping and essential meal preparation. Their space felt more like a kitchenette motel than a home.
▷
PACKAGE RECEIVING
Community amenities extend beyond the physical aspects of a property. They build a community where people feel safe and com- fortable, a place they look forward to coming home to and want to take care of. Once tenants feel welcome and part of the community in their building, they tend to stay longer, treating their homes as if they were owners, not renters. This shift in attitude has another benefit: an increase in property value. Adding amenities helps justify the price per square foot—especially if you need to increase it. Community amenities can vary depending on the property's location and what's popular in that area. For example, an outdoor swimming pool in a rental property in North Dakota is not likely to get much airtime. But a carefully manicured indoor green space might be more attractive.
▷
MEDIA ROOMS
▷
COWORKING SPACE
▷
COMMUNITY GARDENS
▷
OUTDOOR SPACE
▷
SHARED MEETING SPACES
BENEFITS OF COMMUNITY AMENITIES If getting the most out of your investment is top of mind, it’s simple to see how community amenities can enhance your property’s value. COMMUNITY AMENITIES ATTRACT HIGH-VALUE TENANTS. High-value tenants aren’t shy about insisting upon community amenities. They often look not only at the unit they are renting but also at everything around it. They are looking for well-maintained fitness centers, swimming pools, or communal lounges. These features are critical for people looking for comfort and convenience, especially younger
Some examples of community amenities include: ▷ FITNESS CENTERS ▷
DOG PARKS OR WALKING SPACES
34 | think realty magazine :: january – february 2024
Made with FlippingBook Online newsletter